Due to the current financial debacle we’ve been witnessing these past few weeks I’ve been forced to re-evaluate how I invest what the good Lord has blessed me with. I’m no Warren Buffet…yet…so for the immediate future I’ve decided to sit on the sidelines and invest my capital in more secure alternatives rather than the stock market. Have I lost faith in the stock market entirely? No, but since I do not have decades of stock experience and hate the fact of someone else managing my money I’m sticking with a tried and true plan to weather this financial storm. Here’s my simple plan…free of charge:
1. Checking Account With Charter Bank: http://www.charterco.com/personal/turbo.cfm
Under the Charter Turbo Checking Account you’ll earn 6.01% Annual Percentage Yield (APY) on all balances from $0 – 25,000. This is NOT an introductory offer provided by Charter making them probably the highest entry level checking accounts you can find. You’ll earn 1.01% APY (rate of 1.01%) on all amounts above $25,000, and 0.25% APY on all balances if the requirements are not met each statement cycle.
- 6.01% APY* on balances to $25,000
- 1.01% APY* on balances above $25,000
- 0.25% APY* if requirements are not met**
- No ATM Fees Nationwide
- Overdraft Privilege
- Free Online Bill Pay
To earn the 6.01% APY on this high interest checking account, you must:
- Make at least 13 debit card transactions monthly (excluding ATM transactions)
- Receive one direct deposit or ACH auto debit monthly
- Receive your monthly statement electronically (e-statement)
- Access on-line banking at least once before month end
From a marketing perspective I’ll probably redirect my direct deposits from Commission Junction, Shareasale, Linkshare, Google Adsense and Yahoo! Publisher over to Charter Bank and redistribute the balance over $25K to other investments (i.e. Money Market Accounts, CDs, etc.).
2. WaMu Online Certificate of Deposit Investing (CD): https://www.wamu.com/personal/certificate_deposit/online_cd/default.asp
I know you see Wamu and are probably thinking that’s a bad pick. However, with JP Morgan Chase running the show now I don’t think you have anything to worry about. Just before this acquisition WaMu was running a lucrative promotion to get some much needed capital. The’re CD Online will earn you 5.00% APY on a 1yr turn with a minimum deposit of just $1000.00. As far as I can tell there is no cap on that. That is a pretty good rate by any standard so you’ll probably want to lock yourself into this great rate for a year before JP Morgan pulls the plug.
3. EverBank Yield Pledge Money Market Account: http://www.everbank.com/001MoneyMarketYP.aspx
At the time of this post EverBank has the highest APY out of any of the entry level Money Market Accounts I’ve seen. If you set up a Yield Pledge Money Market Account you’ll earn a hefty 3.82% APY and as a bonus you’ll earn 4.65% APY for the first three months. Most decent MMAs are between 3.0% (like the raved over ING Direct) and up to about 3.75% (like OnBank). With the Everbank MMA you’ll need to invest a minimum of $1,500 but you can invest up to $50,000. In addition, unlike some MMAs which seem to charge you for everything there are no monthly fees as long as you keep your balance over $1,500. Otherwise you’ll be charged a monthly fee of $4.95. There is a $6/month transfer and withdrawal fee but that is also negligible.
I’m pretty sure I’m not the only novice investor who is a little leery about investing in the stock market at the moment. Unless you really know what you’re doing it may be more prudent to just hang in the wings and slowly grow your money in safe havens for a while. Hopefully this will help you identify some solid investment opportunities to grow your nest egg. Otherwise just dig a hole in your backyard or stash your dough under the mattress for safekeeping!
*To review the very best Checking Account, Savings Account, Money Market Account and Certificate of Deposit rates available please visit http://bankcd.com/. The list is updated daily and I’m sure you’ll find some amazing rates that will meet your short/long term investment goals.
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